Why Robinhood Day Traders Are Greedy When Wall Street Is Fearful

Americans are applying for jobless benefits by the millions, the economy is in recession, and cities across the U.S. have seen some of the largest protests in decades in response to police violence. Covid-19 deaths have topped 110,000, and the virus is still very much with us, not only in the U.S. but across the world.

And still: As of June 10, the S&P 500 was up almost 43% from its March low. Since the bottom, stocks around the world have recovered more than $20 trillion in value. And the tech-heavy Nasdaq has risen more than 11% in 2020. Wall Street strategists—who are as flabbergasted as the journalists—have found with vivid hindsight the obvious explanations in the numbers. They’ve pointed to a surprise uptick in jobs, interest rates plunging, cheap valuations on certain kinds of stocks, and short sellers being forced to buy shares as they scramble to cover their too-pessimistic bets.